NYSE:DBI

Stock Analysis Report

Executive Summary

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.

Risks

  • Designer Brands has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Designer Brands's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.7%

NYSE:DBI

-1.4%

US Specialty Retail

0.9%

US Market


1 Year Return

-47.4%

NYSE:DBI

-7.2%

US Specialty Retail

0.3%

US Market

DBI underperformed the Specialty Retail industry which returned -7.2% over the past year.

DBI underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

DBIIndustryMarket
7 Day-3.7%-1.4%0.9%
30 Day-19.9%-5.5%-1.9%
90 Day-23.6%-6.3%1.6%
1 Year-45.1%-47.4%-5.7%-7.2%2.6%0.3%
3 Year-36.8%-44.0%19.2%13.1%41.0%31.8%
5 Year-45.0%-53.9%42.0%29.3%55.2%38.0%

Price Volatility Vs. Market

How volatile is Designer Brands's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Designer Brands undervalued based on future cash flows and its price relative to the stock market?

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Designer Brands's share price is below the future cash flow value, and at a moderate discount (> 20%).

Designer Brands's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Designer Brands is loss making, we can't compare its value to the US Specialty Retail industry average.

Designer Brands is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Designer Brands, we can't assess if its growth is good value.


Price Based on Value of Assets

Designer Brands is overvalued based on assets compared to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Designer Brands expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Designer Brands's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

Designer Brands's earnings are expected to grow significantly at over 20% yearly.

Designer Brands's revenue growth is positive but not above the United States of America market average.

Designer Brands's earnings growth is expected to exceed the United States of America market average.

Designer Brands's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Designer Brands is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Designer Brands performed over the past 5 years?

-32.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Designer Brands does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Designer Brands's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Designer Brands's 1-year growth to the US Specialty Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Designer Brands has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Designer Brands has efficiently used its assets last year compared to the US Specialty Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Designer Brands improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Designer Brands's financial position?


Financial Position Analysis

Designer Brands is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Designer Brands's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Designer Brands's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Designer Brands's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (62.6%, greater than 20% of total debt).

Designer Brands is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.8x debt.


Next Steps

Dividend

What is Designer Brands's current dividend yield, its reliability and sustainability?

6.90%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Designer Brands's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Designer Brands's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Designer Brands has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Designer Brands only paid a dividend in the past 8 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of Designer Brands's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Roger Rawlins (52yo)

3.6yrs

Tenure

US$8,273,914

Compensation

Mr. Roger L. Rawlins serves as Chief Executive Officer of Designer Brands since January 2016. Mr. Rawlins serves as Director at DSW Inc. (also known as Value City Department Stores Inc; Value City Departme ...


CEO Compensation Analysis

Roger's remuneration is higher than average for companies of similar size in United States of America.

Roger's compensation has increased whilst company is loss making.


Management Age and Tenure

2.8yrs

Average Tenure

52yo

Average Age

The tenure for the Designer Brands management team is about average.


Board Age and Tenure

11.4yrs

Average Tenure

63yo

Average Age

The average tenure for the Designer Brands board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Designer Brands individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$70,57102 Jul 19
Joanne Zaiac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,688
Max PriceUS$19.14
SellUS$144,93010 Jun 19
Harvey Sonnenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,924
Max PriceUS$18.29
SellUS$109,49319 Dec 18
Carolee Lee
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,531.28
Max PriceUS$24.17
SellUS$69,74917 Dec 18
Joanne Zaiac
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,770
Max PriceUS$25.18
SellUS$141,27013 Dec 18
Harvey Sonnenberg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,540
Max PriceUS$25.50

Ownership Breakdown


Management Team

  • Jay Schottenstein (65yo)

    Executive Chairman

    • Tenure: 14.4yrs
    • Compensation: US$3.99m
  • Debbie Ferrée (65yo)

    Vice Chairman & President

    • Tenure: 0.5yrs
    • Compensation: US$6.95m
  • Bill Jordan (47yo)

    Executive Vice President & President of DSW

    • Tenure: 11.3yrs
    • Compensation: US$3.33m
  • Roger Rawlins (52yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$8.27m
  • Christina Cheng

    Senior Director of Investor Relations

    • Tenure: 0.0yrs
  • Simon Nankervis (52yo)

    Executive Vice President

    • Tenure: 3.6yrs
  • Jared Poff (46yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$1.31m
  • Drew Domecq (45yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.3yrs
  • Margaret Standing

    Director of Corporate Communications

    • Tenure: 0.0yrs
  • Thomas Jessep

    Senior VP & Chief Administrative Officer

    • Tenure: 0.6yrs

Board Members

  • Elaine Eisenman (69yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$245.00k
  • Jay Schottenstein (65yo)

    Executive Chairman

    • Tenure: 14.4yrs
    • Compensation: US$3.99m
  • Joanna Lau (60yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$290.00k
  • Joanne Zaiac (57yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$245.00k
  • Allan Tanenbaum (72yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$269.21k
  • Harvey Sonnenberg (77yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$305.00k
  • Friedlander Lee (77yo)

    Independent Director

    • Tenure: 14.2yrs
    • Compensation: US$255.00k
  • Peter Cobb (61yo)

    Independent Director

    • Tenure: 2.0yrs
    • Compensation: US$275.00k
  • Joseph Schottenstein (40yo)

    Inside Director

    • Tenure: 6.7yrs
    • Compensation: US$230.00k
  • Roger Rawlins (52yo)

    CEO & Director

    • Tenure: 3.6yrs
    • Compensation: US$8.27m

Company Information

Designer Brands Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Designer Brands Inc.
  • Ticker: DBI
  • Exchange: NYSE
  • Founded:
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$1.091b
  • Shares outstanding: 75.23m
  • Website: https://www.designerbrands.com

Number of Employees


Location

  • Designer Brands Inc.
  • 810 DSW Drive
  • Columbus
  • Ohio
  • 43219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DBINYSE (New York Stock Exchange)YesClass A Common SharesUSUSDMay 2011
D9WDB (Deutsche Boerse AG)YesClass A Common SharesDEEURMay 2011
0A1DLSE (London Stock Exchange)YesClass A Common SharesGBEURMay 2011

Biography

Designer Brands Inc. designs, producers, and retails footwear and accessories for women, men, and kids primarily in North America. It operates through three segments: The U.S. Retail, the Canada Retail, an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 00:20
End of Day Share Price2019/08/20 00:00
Earnings2019/05/04
Annual Earnings2019/02/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.